01875cas a2200241 a 4500 AALejournalIMF013605 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484382257 1018-5941 BD-DhAAL BD-DhAAL Tapsoba, Sampawende. Options and Strategies for Fiscal Consolidation in India / Sampawende Tapsoba. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper uses a multi-region DSGE model to quantify the macroeconomic implications of three adjustment scenarios for India: growth-friendly, social-friendly, and a benchmark case centered on bringing down unproductive spending and strengthening the consumption tax. Simulations indicate that fiscal consolidation yields considerable long-term benefits but also entails output costs in the near term. The scenarios in which deficit reduction is accompanied by greater investment and social spending lead to better results than the benchmark case. The consolidation package alone is not enough to maximize net gains. Other factors, such as the pace and the credibility of consolidation, the concomitant implementation of structural reforms, and global economic conditions, play a critical role in the success of fiscal consolidation. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2013/127 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/127/001.2013.issue-127-en.xml IMF e-Library